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Original poster

Would you wait 6 months for a house as a FTB?

56 replies

MindatWork · 24/04/2021 19:29

We accepted an offer on our home this week from ftb who are currently renting in the village (£5k under asking price).

They were keen to move ASAP (seemed to think they’d be able to get in by SDDHmm) but the houses on the new build development we were looking at doesn’t complete until ‘autumn’ (we didn’t have an exact date at this point).

The estate agent explained and they said they were happy to wait, but hoped it would be by September as they wanted to take advantage of the smaller stamp duty reduction.

We went in the sales room to reserve our plot today and our house isn’t due to be completed until end of October 😬. We’re now really worried the buyers are going to get nervous and pull out, especially as the developer will be pushing us to complete quickly.

Would you be happy to wait 6 months for your perfect house? Housing stock in our village is limited - and with a new build at the top of the chain at least they know it won’t fall through.

We can’t afford to lose their offer as we’ve pushed ourselves on the new house. If we did lose them we’d have to find someone prepared to pay the same amount, and v quickly or else we might lose our plot.

I’m stressing that they’re going to decide 6 months is too long and look for something else. What would you do?

OP posts:
Original poster
MindatWork · 24/04/2021 20:22

@senua we’d been watching plots go like hot cakes at the development we wanted to buy in. It’s the only thing we’ve seen that matches our requirements in over a year of looking.

Our current house has a few quirks which wouldn’t be an issue for the right buyer but we’d had quite a few viewings (and cancellations) with no offers and we just couldn’t wait. We’d already negotiated them up from their original offer.

They initially said they were happy to wait a while and be flexible - it’s one of the reasons we accepted a lower offer in the first place.

Guess we’ll see what happens!

OP posts:
Original poster
MindatWork · 24/04/2021 20:25

@kickergoes yes, DH has suggested offering them half the saving they’d make on stamp duty if we completed end of September (or likely the whole amount which is around £2.5k) to convince them to hold on.

If not then we’ll look at rental options but there’s literally nothing in this area.

OP posts:
mummabubs · 24/04/2021 20:28

@GlitterGiraffe13

I know you say "if they'll wait until September they'll wait until October"... What's your plan if your new build gets delayed again and gets pushed back until Christmas/early 2022?

I think you'll need to rent..

This was my thought too I'm afraid. My SiL bought a new build a few years ago and that had several delays before they eventually moved in. And although you'd be offering them half the remaining discount they'd still be out of pocket compared to if you completed earlier. Renting is a pain in the ass but I think you'd be more stressed if the sale fell through and you had to quickly sell again in order to hold onto your new build?
Sally872 · 24/04/2021 20:29

I would offer full stamp duty saving. You are asking them to wait a while so I wouldn't want them to be out of pocket at all.

My preference would be to rent instead if paying their stamp duty discount as otherwise I would be nervous they may pull out for the next 6 months.

PurBal · 24/04/2021 20:32

AIP only valid 6 months, the product may no longer be available. Mortgages for FTB seem to be tricky atm. So no, I wouldn't wait.

Aroundtheworldin80moves · 24/04/2021 20:33

You are asking them to pay several extra months of rent plus stamp duty. Delaying could cost them thousands.

PurBal · 24/04/2021 20:34

Sorry. AIP and and Offer may be different length but usually no more than 6 months.

Original poster
MindatWork · 24/04/2021 20:37

@sally872 with a new build the developer requires you to complete fairly quickly (ideally within a month to six weeks) so the deposit goes up the chain then there’s a longer gap than usual between completion.

They’ve had this explained to them so if they agree to proceed (with SD contribution) they’ll be tied in relatively early in the process.

OP posts:
TakeYourFinalPosition · 24/04/2021 20:45

I hope you’re not our seller 😬 Ours asked for patience and we’ve said we want to be done by September at the very latest, but October would be just too far, especially for a new build, they never seem to run to time.

Our mortgage offer would expire too.

crazylikechocolate · 24/04/2021 20:48

I'm going to go against the grain and say ask them to wait , I think it mostly depends upon where you are and how fast property is moving but I know if it was here in my area there simply isn't anything much coming onto the market to give the alternative for them to buy , they at least have a ( your) property lined up and a price agreed. Currently you must be in a position to proceed before you view so unless they find an empty house whats not to say that if they find another property the sellers will be in a better position to move out any quicker ? They are already in rented so ready to move forwards unless their rental has a time limit on it so it just means staying put for a while longer , as for stamp duty they have already saved themselves £5 buy knocking you down
Talk to your agent and be honest , I'm sure it will all work out

Leonberger · 24/04/2021 20:51

The new build we almost reserved was meant to complete October and didn’t actually complete until February!
In my experience they are almost always late so I wouldn’t wait.

InTheNightWeWillWish · 24/04/2021 20:57

I’d have been fine waiting for 6 months as it would give us more time to save but our rental was cheap and secure. If our rental had been more expensive or the lease was up for renewal, probably not. However, I wouldn’t have been happy with the sellers delaying after that 6 months and I’d have started looking at other options.

TheMoth · 24/04/2021 20:59

I think this will happen a lot. It's possible we'll be in this position.

No one will let you look at a house until you have an offer.

But if you get an offer and you can't see something you like, what do you do? There is nowhere to rent around here. Local groups are always full of people desperate to find a house to rent. Our next house will push us to the max, so it needs to be at least as good as the one we're already in.

Changingwiththetimes · 25/04/2021 00:09

I'd reduce by the missed second stamp duty. It is immaterial that you are selling £5k below asking- you accepted that offer, it's not a 'discount'. But as others have pointed out, how can you be sure you will be in by October? Are there penalties for the new build developer if they miss their own deadline? Will your buyers wait beyond that point?

QforCucumber · 25/04/2021 07:52

I thought ftb didn't pay stamp duty anyway?

NoWordForFluffy · 25/04/2021 08:05

Only below £300k, I think it is. So it depends how much the OP's house is selling for (and if they're genuine FTB; if they've ever owned a house before they don't qualify).

RainingBatsAndFrogs · 25/04/2021 08:15

Have they checked that they actual have to pay SDLT?

I wouldn’t wait on a purchase dependent on a new build, because if the delay.

Also, it is not unlikely that prices might dip a bit after the SDLT holiday, so if you lose them to might not get the same asking price. Or they might ask for a further reduction. Or see a new suitable property become available.

Ducksurprise · 25/04/2021 08:17

So let me get this right you want
Your buyers to keep paying rent at no benefit to them
Then expect them to pay half the stamp duty increase
And expect them to wait until a new build is completed?
Do you have your mortgage aip?

Ellpellwood · 25/04/2021 08:32

I bought a part exchange via Persimmon. We threatened to pull out when the new build the family in our new house was moving to was delayed 2 months - having waited 3 already. They told us the week before completion and we had already given notice on our flat.

Persimmon (i.e. the "seller") ended up paying our rent for 2 months. Thank god we managed to extend the lease.

ArchbishopOfBanterbury · 25/04/2021 08:36

New build dates aren't set, it's likely to be later. Give them the current date of moving, and offer to pay the stamp duty costs. See what they say.

If dates do slip, you'll have to rent. Just like they are doing for 6 months.

Paddingtonthebear · 25/04/2021 08:39

After the the stamp duty holiday ends at end of June the threshold will be £250,000 until 30 September. Then from
1st Oct it will go back to the normal rate of £125,000

kickergoes · 25/04/2021 09:20

@Ellpellwood hadn't you already exchanged?

Ellpellwood · 25/04/2021 14:44

@Ellpellwood Yes, without a fixed date. We were aware there could be a delay of a couple of weeks, all fine, but it was September 2008 and they unexpextedly downed tools for a while due to the crash.

kickergoes · 25/04/2021 15:20

@Ellpellwood yes it's usually a long stop completion date with a 3 month window.

wouldukissafrog · 25/04/2021 15:23

It's not your fault but it should be your problem not theirs. I think if you need the buyer you should look to rent locally to bridge the gap